Energy Drives June Producer Prices Acceleration

The Producer Price Index for final demand increased 11.3% in June compared to a year ago and 1.1% from May, according to the Bureau of Labor Statistics, which said roughly three-quarters of last month’s rise was attributable to goods such as energy.

The year-over-year rise is the highest since March, when the bureau reported an annual PPI increase of 11.6%. Inflation remains at a four-decade high.

The monthly increase in June followed advances of 0.9% in May and 0.4% in April.

Prices for final demand less foods, energy and trade services moved up 0.3% in June after advancing 0.4% in both May and April. For the 12 months ended in June, the index for final demand less foods, energy and trade services rose 6.4%.

“The index for final demand goods moved up 2.4% in June, the sixth

consecutive rise,” the bureau announced. “Nearly 90% of the June increase can be traced to a 10% jump in prices for final demand energy. The indexes for final demand goods less foods and energy and for final demand foods advanced 0.5% and 0.1%, respectively.”

The bureau said more than half of the June increase in the PPI for final demand goods was attributable to gasoline prices, which jumped 18.5%. The indexes for diesel fuel, electric power, residential natural gas, motor vehicles and equipment and processed young chickens also moved higher.

Census Bureau Releases Manufacturing and Trade Shipments Data for May

The combined value of distributive trade sales and manufacturers’ shipments for May — adjusted for seasonal and trading day differences but not for price changes — was estimated at $1,829.1 billion, up 0.7% from April 2022 and up 14.4% from May 2021.

Manufacturers and trade inventories for May — adjusted for seasonal and trading day differences but not for price changes — were estimated at an end-of-month level of $2,381.9 billion, up 1.4% from April 2022 and up 17.7% from May 2021.

The total business inventories/sales ratio based on seasonally adjusted data at the end of May was 1.30. The May 2021 ratio was 1.27, the bureau said.